The cost of acquiring a crypto exchange license in Hong Kong has significantly decreased from $25 million to several million dollars, according to Livio Wang, the chief operating officer of HashKey Group, in an interview with the Financial Times.
Wang explained that while the costs for license review materials vary from the operational costs, the overall expense is still in the range of tens of millions of Hong Kong dollars. Since June 1, Hong Kong regulators have cracked down on unlicensed crypto exchanges, with criminal charges awaiting non-compliant entities. Currently, there are over 11 firms considered to be licensed, with only two fully licensed exchanges – HashKey and OSL.
During the interview, Wang disclosed that HashKey Exchange has managed $500 million in user assets since its inception and facilitated $440 billion in total trades. He also noted a significant increase in customer activation, with a 267% rise in activated customers compared to the previous week.
In April, HashKey expanded its operations by establishing a global exchange in Bermuda, following the footsteps of Coinbase. Unlike its Hong Kong-based platform, HashKey Global will not serve customers in Hong Kong, China, the United States, and several other regions. Last year, the launch of Hong Kong’s exchange licensing system faced setbacks when an unlicensed crypto exchange, JPEX, defrauded investors of $166 million before collapsing in September 2023.
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